New classical macroeconomists believe that
a. markets clear each and every period.
b. the labor market does not clear.
c. individuals are locked into money wage constraints.
d. individuals face market constraints in their ability to act in their own self-interest.
e. none of the above.
E
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What two things does the amount of property income a household earns depend upon?
What will be an ideal response?
The Slutsky equation is a mathematical representation of:
A) a utility function. B) the marginal utility of income. C) a demand curve. D) the income expansion path. E) the substitution and income effects.
Which of the following is most likely to shift the potential output of an economy to the right?
a. A decline in the length of the average workweek b. An increase in the supply of educated and skilled workers c. A drought d. An increase in aggregate demand e. An increase in the minimum wage received by workers
The phenomenon known as the tragedy of the commons occurs whenever:
a. the private sector owns resources and manages them tragically. b. the government owns resources and manages them tragically. c. there is no ownership of resources, so they become depleted due to lack of management. d. two countries own the same resource and cannot agree on its management.